Westinghouse files for bankruptcy

WASHINGTON - Westinghouse, one of the most storied names in the nuclear energy business, filed for bankruptcy on Wednesday, dealing a blow to the future of the nuclear power industry and leaving question marks about the future of four reactors currently under construction in the United States.

The filing also brings to an end the marriage of Westinghouse and Toshiba. When the Japanese giant - maker of everything from medical devices to home appliances - bought the Westinghouse nuclear business in October 2006, it declared 'the dawn of a new era for nuclear energy.” Together the companies would make a 'powerful combination,” Toshiba said.

A decade later, that combination has melted down. Toshiba has written off more than $6 billion in losses connected to its U.S. nuclear business, citing accounting problems, delays and cost overruns.

And it has pulled back from new nuclear projects under discussion in India and Britain.

The bankruptcy filing Wednesday will trigger a host of legal questions about whether Toshiba remains responsible for losses at Westinghouse and whether the utilities that own the reactors under construction will have to eat more of the cost of completing them.

That could mean higher rates for consumers in those areas. In seeking protection under chapter 11 of the bankruptcy act, Westinghouse still could finish building those plants.

Westinghouse said it has arranged $800 million in debtor-in-possession financing so that it can continue to service customers while restructuring its business.